Properties remain an attractive investment area as a result of better yields and a more secure operational environment compared to other investment items. The main obstacle is that supply does not meet demand. In addition to the Helsinki city centre, investors are interested in other prime submarkets in the metropolitan area as well as Turku and Tampere.
There is also strong demand for modern logistics properties in good locations. These properties offer better yields than office properties, and the growing e-commerce sector is boosting occupier demand which, in turn, helps maintain rent levels that are high even in comparison to the rest of Europe.
According to Newsec's estimates, transaction volume – which is used to measure property market activity – will reach approximately EUR 6.5 billion in Finland in 2020, bringing it to the same level as the previous year. In 2021, this volume is expected to decrease to approximately EUR 6 billion. We do not predict many large-scale billion-euro platform deals of the kind that have boosted transaction volumes in previous years. We therefore expect the transaction volume to return to its long-term level.
Once again, Newsec's Property Outlook provides up-to-date information on the property markets of Finland, the Nordic countries and Europe. The main theme of this outlook is logistics.
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